Reasons to Invest in Property in Croatia in Zagreb

In terms of property investment interest in Croatia, the vast majority of international individual and even corporate interest seems to still be focusing exclusively on Croatia’s coastal regions and on targeting specifically a growing tourism base and second home interest from German and British purchasers – but what about Zagreb guys? 

As the capital city of a nation accelerating fast towards a successful EU landing surely it’s worth consideration - or to put it another way - as a capital city of a fast emerging country with a developing economy and plenty of space for massive social and economic development surely it’s worth consideration?  In this report we’ll look at reasons to invest in property in Croatia in Zagreb - in our humblest of opinions of course!

This week it was announced by Colliers International that they have successfully leased 100% of the very first third generation mall in Zagreb.  This project has been cutting edge in Zagreb and it isn’t even completed yet – and yet Colliers have generated such significant international investor interest in this project that it is sold out, leased to the hilt and totally oversubscribed!

The project is Avenue Mall; it’s going to feature over 130 shops as well as bars, restaurants, cafes, a massive multiplex cinema and a huge supermarket and oh so cleverly, the developers GTC Croatia ensured the site they chose for the mall was within a maximum of a 30 minutes drive for the entire greater catchment area of the city of Zagreb.

Those who have made a commercial investment into this opportunity certainly had great foresight.  And what it demonstrates to us is that there is broad and sustainable scope for investment into property in Croatia in Zagreb…

Why? 

Because those who bet on Avenue Mall were betting on the increasing affluence of a growing middle class emerging in an economically advancing city – that’s why…

That’s right – Zagreb has a micro-economy all of its own as many capital cities around the world do - and already it is apparent that those who live and work in Zagreb, those who are building their lives in this city, well, they are fueling a property market that will stand alone and stand out. 

Not only is Zagreb the capital of Croatia, it is the political, administrative, economic, cultural and accessible heart of the nation.  It has strong levels of tourism traffic, it has strong levels of inward migration and it already has strong levels of foreign direct investment commitment – additionally it has seen strong and sustainable commitment from the likes of GlaxoSmithKline, IBM, Siemens, L’Oreal and Nestle which are companies which have created an employment spike and helped in part to ensure that the citizens of Zagreb have a platform on which to rely for their careers, their jobs and their future financial security.

Naturally enough property prices in Zagreb have been climbing already – because there is strong demand and demand from those who can afford to demand as well!  Banks are happily lending to local Croatians to buy up real estate in Zagreb and there is still seemingly plenty of room left in the mortgage market for more applications to be made and met.

In the meantime and additionally of interest from a property investor’s perspective, because of a city’s very nature there is also a high level of demand for rental accommodation in Zagreb.

This is an affluent city, a forward thinking city, a city in which the inhabitants are growing strong in economic terms and a city where there is quite probably long term potential for development and growth – and these are our main reasons to invest in property in Croatia in the city of Zagreb.

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